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More Articles Regarding funeral service practice: |
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Consumer Reports Critical of Funerals and
Advance Planning |
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The Sheenan Commitment |
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Planning for the Future - just makes sense |
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Making Sense of Medicare |
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Pets not always considered with Advance Plans |
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| Consumer Reports Critical of Funerals and Advance
Planning |
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| Our Response: |
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| Consumer Reports magazine, in their May 2001 issue,
reported on an investigation into funeral arranging and prepaid funerals. Most of the
information was distressing and portrays many of those who pay for funerals in advance as
victims. While the problems raised are mostly with the three large corporate owners of
funeral homes, the criticisms of advance planning and advance funding have an effect on
all funeral homes – including the honest independents who are providing excellent
service and value for people wishing to plan and fund in advance. To Consumer
Reports’ credit, they did point out that New Jersey and New York have consumer
friendly laws. However, one had to read through the whole article to find this, close to
the end. |
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Consumer Reports stated that "you’ll probably pay
top dollar for a pre-paid funeral" and that "There are much better ways to plan
in advance." They reported that three big chains of funeral homes account for one
quarter of all the funeral homes in this country and that a portion of the funds paid for
funerals in advance are being used to pay down current debts. In order to increase sales
of funerals in advance, funeral corporations have been aggressively marketing to increase
sales. They continue: "The pitch is simple: Plan ahead and save your family the
stress of making arrangements at the worst time; lock in your price now to avoid much
higher costs later." Rising costs, from Consumers point of view are not raising as
fast as it has been suggested. We agree with that contention, nonetheless, prices will be
rising and future increases need to be considered, just as we recognize that the cost of
living will be much higher when we retire. |
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| On advance planning: |
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| Planning in advance is not entirely a financial matter. It
is not a matter in which anyone should be encouraged to do on their own either – it
should be a family matter. The first step in planning for ones future funeral plans is for
a family to talk. |
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| Ultimately, we believe that advance planning will be
treated much in the same way people treat preparing for retirement. Making an advance plan
can start with the decision of the final disposition: burial, entombment or cremation.
Assembling ones personal information, vital statistics and important papers in advance is
much easier to do since time is not of the essence! Putting everything to paper and
reviewing it with family members is not necessarily an enjoyable experience, though it
will be of great benefit to the survivors later on. |
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| Whenever a person dies and a family makes arrangements at
the time of death, decisions are made by a consensus of the close survivors. Some of the
anxieties of making arrangements "at need" stem from the survivors trying to
guess what the decedent would have wanted. Important information and papers may need to be
found and often this creates more stress on top of one’s grief due to the loss of
their loved one. To our credit, most funeral directors do an exemplary job of helping
families get through these tough times. Regardless of whether one has planned for the
future or not, it is our aim to do everything possible to help survivors deal with their
loss, have a meaningful funeral or experience and adjust to living without the decedent. |
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| So why plan ahead? And, if you plan ahead, why involve a
funeral home in all of this? More than ever, there are many options available and many
ways to have a funeral. Who better is there to explain all of the options than a funeral
director. Often when talking with people about funerals, they are not aware of what can
and can not be done. Some people have expressed an interest in cremation but did not
realize that they could have a viewing and funeral service prior to the cremation. Some
veterans are not aware of the existence of cemeteries where they can be buried, free of
charge. |
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| Saving Money: |
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| The savings by funding in advance are to be realized at the
time of the funeral. There are no discounts on current prices, hence if one wants a
"top dollar" funeral they will be paying "top dollar." There are many
ways of funding a funeral in advance. Not everything is guaranteed, and exactly what is
guaranteed may very well differ from place to place. It is important that every detail be
thoroughly explained and understood. Guaranties are what provide for the best value and
the most in future savings. Services and merchandise are what are usually guaranteed while
cash disbursements are not. Cash disbursements include the monies being paid for cemetery,
clergy and other expenses, which are not controlled by the funeral home. |
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| The basic premise of paying in advance is that costs
increase over time, and by putting the money aside, it will grow to cover the increased
cost. Some recommend that people do this on their own because they believe that they can
get a better return on their money than with a trust or insurance policy. There are two
main points to make about this contention: 1; Often a number of people who have every
intention of putting money aside never get around to doing it. 2; If one invests in stocks
or mutual funds and has to cash in while the market is low, they will be forced to take a
loss. |
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| A great advantage of funding through a funeral home comes
in the way of guarantees. If the funeral home guarantees that the survivors will not have
to pay any more for the cost of services and merchandise, there can be considerable
savings. |
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| Here are some actual examples of how families benefited
financially by funding in advance: |
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| In mid 2000, a family arranged and funded a funeral in
advance with an (Forethought®) insurance policy through the funeral home. They had
expected their mother to live a number of years more, but she died less than one year
later. During that time the cost of the funeral did grow by 5% and they received money
back because the value of the policy had increased more than the cost of the funeral. |
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| A husband and wife arranged and funded their funerals in
advance with an (Forethought®) insurance policy on each of them back in 1998. The wife
died earlier this year. The cost of her funeral had risen on an average of 6% a year and
her husband received money back as the policy value was more than the new funeral cost. |
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| Trusts and Insurance policies do not always grow faster
than the costs – not everyone gets money back: |
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| In the Fall of 1997 a funeral for a widow was planned and
funded through NJ Choices Trust. Three years later the funeral cost, which had risen at 6%
per year was $42 more than the growth of the trust, which had grown by approximately
$1240. Tom Sheenan accepted the payment from the trust fund as payment in full! |
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| A woman who had planned and funded her funeral in 1996 and
died earlier this year chose Forethought® Insurance. The cost of her funeral had only
risen an average of 4% a year, yet the value of her policy did not meet the current cost.
The cost of that funeral had risen $1,720, which was $485 more than the value of her
policy. Since the Sheenan Funeral Home had guaranteed the funeral, her survivors did not
have to pay an extra cent. |
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| It is paramount that one knows what one is getting when
they pay for anything in advance. Ask about what is guaranteed and what are the
limitations. |
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| At Sheenan Funeral Home nothing is hidden. Funerals are
funded either through a trust operated by the New Jersey Prepaid Trust Fund or with
Forethought® Whole Life Insurance. 100% of the money paid goes into these funding
vehicles. They are completely portable and can be taken to any funeral home a person
chooses. Interest that grows in the trust stays in the account and the funeral home has no
claim or use of this interest prior to the funeral. In the event of a refund on a trust,
the family will receive back all of their money plus all the interest. The NJ State
Banking and Insurance Commission regulates all insurance policies. |
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| New Jersey has, on many accounts, some of the toughest laws
in the country. Our state could serve as a good model for the rest of the country.
Consumer Reports seems to feel that it is unlikely that Congress will be passing any
pre-need laws. Whether or not they do, or whether individual states will do much will not
help people considering advance planning today. Before signing any agreements, it is
important that the buyer know where the money will be going, what is guaranteed and what
is not, know how interest is taken care of and understand what happens at the time of
need. From the accounts in Consumer’s article, people in some other states may be
better off not funding in advance or moving to New Jersey! |
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| Advance planning: |
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Relives your loved ones of the burden of having to make difficult
decisions. |
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Removes the financial burden placed on your family. |
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Expresses your wishes and desires. |
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It puts you in control. |
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| When preparing to fund a funeral in advance, some of
questions that should be asked are: |
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Where is my money going? |
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What is and is not guaranteed? |
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Is it portable? |
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Will there be any additional costs at the time of the funeral? |
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If I change my mind, can I cancel it? |
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| What is most important, when dealing with what can be a
difficult event, is to beand discuss arrangements and wishes with your family now.
Be sure that there are no ill assumptions or ideas that have not gone unexplored.
Discussing these matters in advance provides that both the needs of the survivors and of
the recipient can be met.v |
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| The Sheenan Commitment |
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| It’s all about helping people |
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| Managing a successful organization in our changing world
requires constant review of what that organization stands for and how it best serves the
needs of its clients. Managing a funeral home is no different. |
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| At the Sheenan Funeral Home, we realize the necessity of
letting our community know who we are and of the many ways we can help them. By offering
informative seminars and having a comprehensive advance-planning program we can better
serve everyone’s interests. We help people to be more informed and help them to be
better prepared for the future. |
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| Through our contact with people before a death has
occurred, we are able to help people prepare arrangements in advance, reliving the
emotional burden survivors may encounter when faced with making difficult decisions. And,
we also offer ways of controlling the rise in future costs. |
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| While some funeral homes are being sold to corporations,
Sheenan Funeral Home remains under family control. Owned and operated by the Sheenan
family since 1933, our aim is to do the best we can for each family who calls on us. |
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| We care for our families and stay with them as long as
they need us! |
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| Plus, our commitment doesn’t end after the funeral: We
care for our families and stay with them as long as they need us! Everyone who works at
the Sheenan Funeral Home is committed to bestowing the kind of worry-free "Sensitive
Service" families have come to both expect and deserve. |
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| Focusing on each families needs: |
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| We, like other funeral homes, offer a wide range of
services and products. What sets us apart is how we place the family and their desires
above everything else. No two funerals are exactly the same because of the fact that very
individual is different. Before working out the specific arrangements with a family we
first listen to them. |
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| What sets us apart is how we place the family and their
desires above everything else |
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| We learn of that they have been through and what their
needs are – then we explain what they can do, and we work, with them to build
a meaningful memorialization around their needs. |
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| Building relationships: |
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| A successful long-term relationship with a family is one of
our most valuable assets. At Sheenan Funeral Home, each funeral director is ever mindful
that quality relationships are earned. Only through providing the best individualized "Sensitive
Service" to each person who calls can we keep their trust and maintain that
valuable relationship. |
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| It’s all about people: |
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| Though we pride ourselves on our ability of doing an
exceptional job with every aspect of funeral service, if we had to sum up what we are all
about we would have to answer: It’s all about people!v |
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| Planning for the Future |
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| It just makes Sense! |
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| Planning in advance for a funeral is growing in popularity.
While the idea of planning for this inevitable and most unwanted event may not feel right
to some, it is anticipated that in the future advance funeral planning will be a normal
part of ones financial planning along with planning for college and retirement. |
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| In a 1999 survey by the American Association of Retired
Persons, one in five Americans age 50 and older have experienced funeral arranging and/or
advance planning. Twenty-nine percent of those arranging for a funeral found some details
to have been already planned and paid for. The AARP has also stated that more and more
Americans are entering into "preneed agreements" to purchase funeral goods and
services before death. In a 1998 survey, AARP found thirty-two percent of those surveyed
to have paid in advance for some or all of their funeral and/or burial expenses. |
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| Planning in advance is much more than a money issue.
Planning starts off with information gathering and organizing, which relieves survivors
the task of searching for birth certificates, military papers, social security numbers,
cemetery property deeds and more. The next step is to review the choices and options for
services and put the selections down on paper. A casket and other merchandise can be
selected, or survivors can be given the remaining choices to be made when the need arises.
Funding for a funeral in advance is the last step, and while optional, for many people
this is a wise step to take. If one is unsure whether they want to fund a funeral in
advance, they can and should go ahead to make plans without funding. |
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| People who make advance plans have many different reasons.
Some people after retirement make their arrangements so they have nothing else to worry
about and to relieve their children from the frustration of trying to figure out what
their true wishes were. Others with little or no family around make their own arrangements
to make sure their wishes are known and carried out. People who will be in need of
receiving Medicaid must "spend down" their assets prior to becoming eligible for
assistance and are encouraged to plan for and pay in advance for their funeral. |
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| Ask anyone who has made arrangements in advance and you
will hear for yourself of all the advantages. In a recent survey mailed in following a
funeral, a survivor (who also has made advance plans) stated: "Prepaid funerals are
the way to go – less stress, less hassle, more time to deal with family and not be
pulled in other directions." In 1998, a person wrote Dear Abby in praise of advance
planning: "Years ago, both my parents had the foresight to preplan and pay all of
their funeral arrangements. All Dad had to do for Mother’s service was order the
flowers; then we were able to share condolences with more than 500 guests. It made her
funeral a beautiful time of reuniting old friends and family." |
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| People funding a funeral in advance can be able to pay at
today’s costs for future service. This is a unique situation one can take advantage
of. Where else can one get something in the future based on current costs? This enables
people to have control over how and when they will make payments unlike what happens after
a sudden death occurs, with no plans in place. |
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| One can chose to make a single payment, pay for part now
and part later, or over time with a payment plan for three, five or ten years depending on
the method of funding they chose! |
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| The most popular funding option when planning with Sheenan
Funeral Home is with a Forethought® life insurance policy. This is a special insurance
policy made to have a rising death benefit which rises with the cost of living and
inflation. When using Forethought® for the funding vehicle, Tom Sheenan guarantees that a
family will not have to pay an extra dime for the services that were selected in advance.
The casket cost (for caskets selected at Sheenan Funeral Home) plus other costs are
guaranteed as well. And, in most cases the increased death benefit adequately covers the
other rising costs not under funeral home control such as cemetery charges and other
charges by third parties. |
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| Tom Sheenan carefully investigated Forethought® before
placing his full trust in them. |
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| In the State of New Jersey, advance funding is very safe.
It is important to know that the funeral home does not deposit and keep any money. 100% of
all monies paid in advance to Sheenan Funeral Home go either into a trust fund or a
Forethought® life insurance policy. There are other policies one may hear about, but
Forethought® is the one which stands out above the rest. Specially since the Sheenan
reputation is centered around "trust," Tom Sheenan carefully investigated
Forethought® before placing his full trust in them. All arrangements are transportable.
If someone moves, they can take their advance funding with them. The State Department of
Banking and Insurance and Division of Consumer Affairs maintain well defined guidelines
and regulations protecting all who make advance plans and guarantees that families will be
getting all the benefits that are promised. |
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| Funding in advance is not meant to replace life insurance.
Life insurance is important to have in covering all the other expenses a family may incur
preceding a death. This includes hospitalization, home care, loss of income, unpaid bills
and other incidental expenses. What may have been a more than adequate policy for ones
needs twenty years ago may no longer be enough. On a regular basis one should review all
of their plans and policies to make sure they are well covered. |
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| For generations, people have been acquiring cemetery
property well in advance of needing it. Now people can complete the plan. Advance planning
should be a regular part of retirement planning -- It just makes sense!v |
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| Making Sense of Medicare: |
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| As adults we have often thought: "I need to be my own
person, to be in control, to make my own decisions." How many times have we expressed
these feelings to ourselves if not in words? To be in control is of prime importance to
everyone. |
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| As a baby we depended on everyone for everything –
from being fed to being moved from place to place. We developed into childhood and things
changed, but we still depended on our parents for the food we eat, the clothes we wore and
the transportation we needed. Eventually we began to take more and more control. |
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| Finally we were responsible for our care and welfare the
choices we made were the results we lived with. The years grew and our control gradually
began to ebb. Now we begin to look to our family, and to the government: Social Security,
Medicare, Medicaid. |
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| At retirement age we are old enough to receive the
"rewards" of the years we had withholdings put aside for this time. But -- it
comes at a price. We are told what we have to do to collect that which we have paid for.
So how to we maintain the control we so need? The answer ....knowledge .... having
information... being in the know. However you want to say it the simple fact is "If
you don’t know -- you don’t control!" |
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| At age 65 one may sign up for Medicare Part A. Those
who are not under a work related Health Insurance Plan may apply for Medicare Part B.
Then there is a thing called Medigap to cover the expense gap between what the
state pays and it does not. Then there is a Managed Care Plan. It all sounds very
confusing. Just remember that the way to remain in control is to be proactive. Seek
information from a number of sources. Ask friends who have already learned how to deal
with the complicated system which is in place. |
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| Following are a few definitions and contact information to
help send you in the right direction: |
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| Original Medicare: sometimes called Traditional
or Fee-for-Service. You can use almost any Doctor, Hospital or other health care
provider in the country and they are paid for each service you receive. There will be some
out-of-pocket cost for your care. Those enrolling in the Medicare program for the first
time, will automatically receive this. |
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| Part A: Is for hospital care and is premium free for
most people with a deductible of $768 each benefit period. |
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| Part B: Covers doctors services and has a premium
which is automatically deducted from your Social Security. |
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| Medigap: Is not a government entitlement. Medigap is
an insurance policy which is sold by private insurance companies to fill some of the
"gaps" -- costs not paid by Original Medicare such as the 20% co-payment. |
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| Medicare Managed Care Options: This could be an HMO
(Health Maintenance Organization). The government pays a fixed amount of money to your
health plan to provide all of your care. As with all HMO’s you generally must receive
your care from the providers named by the plan. |
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| Resources: |
| Medicare Hotline |
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| US Government Medicare Web-site: http://www.medicare.gov |
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| Medicare Helpful Contacts: |
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| Medigap Comparisons: http://www.medicare.gov/mgcompare/home.asp |
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| Medicare Rights Center: http://www.medicarerights.org |
| (The Medicare Rights Center is a free counseling service to
Medicare Beneficiaries) v |
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| Pets not always considered with Advanced Plans |
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| The origins of this article began when a child called the
funeral home and said that his dog died. Charles Bechtold, who took the call, is a pet
owner who has experience in dealing with the death of pets took the call seriously. He
explained that the funeral home did not care for pets and started to suggest where this
person may look for help – then the punch-line was given and the call ended. The
thoughts of pets and dealing with death did not end. |
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| It is estimated that Americans spend over $21 billion a
year on their pets. Some pet owners carry health insurance on their pets, and will go to
great lengths in providing the very best for them. Nowadays, extensive surgical
procedures, cancer treatment and chemotherapy are performed daily on many highly valued
pets. |
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| There are a number of ways with dealing with the death of a
pet. Most veterinarians offer some services and can advise people on ways in caring for
the death of a pet. Resources are also found in the yellow pages and Internet. |
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| In dealing with the death of a pet, owners are capable of
dealing with the loss and of getting help. The inverse cannot be said about the pet who
has suffered a loss of its owner. While this may sound ridiculous, it can be a problem for
the survivors of a pet owner who has died. |
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| While having a agreement with someone (and alternate) to
care for the pet(s), it is important that ones wishes be known to all survivors of a pet
owner. A last will and testament is a good place, details, however, it will not be read
immediately and there is the risk that the pet will be treated in a way contrary to the
decedent’s wishes. |
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| A pet owner may bequeath money towards the caring of the
pet. While one cannot name their pet as a beneficiary, they can designate someone as
beneficiary with the understanding that the money be used for the care of the pet. If no
one can care for the pet, one needs to find a facility to care for the pet or find it
another home. |
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| There are many ways in which to handle the details. Some
options include establishing a pet trust and appointing a trustee to manage how monies are
spent. Also it needs to be specified as to what should be done with any monies remaining
after the pet dies. |
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| No matter what one’s feelings are when it comes to
caring for pets, it makes sense for every pet owner to prepare in advance for the care of
their pet in the case of their death.v |
